By Angela Chen
Health-care real-estate investment trust HCP Inc. said Tuesday
that the U.S. Department of Justice has filed a complaint against
its HCR ManorCare Inc. venture for alleged false claims related to
Medicare reimbursement.
The Justice Department complaint, which was released from seal
on Monday, follows a civil investigation of lawsuits filed by
former HCR employees, according to a regulatory filing. In the
previously sealed lawsuits, the employees claimed, under a
provision of the federal False Claims Act, that HCR submitted
claims to Medicare for therapy services that were unskilled,
unnecessary, not covered by the skilled-nursing facility benefit
and therefore not covered by Medicare reimbursement.
The cases have now been consolidated in the U.S. District Court
for the Eastern District of Virginia.
HCR intends to "vigorously defend" against the civil action,
according to the company. In a letter to employees and business
partners, it clarified that the case is a "billing dispute" and the
company isn't being accused of billing for services it does not
provide.
Rather, the lawsuit "stems from the government's view that our
industry as a whole is providing a level of care to Medicare
rehabilitation patients that exceeds the government's
expectations," according to the letter.
Ohio-based HCR operates 283 nursing homes.
Write to Angela Chen at angela.chen@dowjones.com
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